Tuesday, November 22 2005 18:59 Hrs (IST) - World Time -

Bangalore: Taking advantage of the lower labour costs in India, Australia's speciality biscuit manufacturer, Unibic, is seeking to make Bangalore a hub for foray into neighbouring countries as well as to catering to some of the overseas markets.

Labour costs are lower by 30 to 40 per cent in India and Unibic Australia is also planning to manufacturer in India certain products which are labour-intensive in that country, cutting labour costs by 50 to 60 per cent, Managing Director of Unibic India, the Indian arm of Unibic Australia, D D Saxena said today (Nov 22, 2005).

"We want to create a market based out of India," he said.

Countries such as Sri Lanka, Bangladesh and Pakistan are being eyed.

Unibic has a state-of-the-art facility here where it has so far invested Rs 20 crore, Saxena said, adding, the 50-year-old family-owned firm plans to invest an additional Rs 10 crore here in the next six months.

According to him, Unibic India has targeted sales of Rs 30 crore in the calendar year 2006, 25 per cent of which is expected to be exports. Unibic India has started exporting the products to markets such as the United Kingdom (UK) and the United States (US), he added.

The thrust is on brand-building, exports and strategic alliances going forward, Saxena said, adding, the company is targeting the premium biscuit segment in India, estimated to be valued at Rs 500 crore, growing annually at 20 per cent.

Unibic launched in the market today butter cookies made here; they come in two packs of 75 gms and 150 gms, priced at Rs ten and Rs 22, respectively.